32% increase in Hibernian first-quarter sales

HIBERNIAN Life and Pensions, owned by British-based Aviva, reported a 32% increase in first-quarter sales to £185m (€273m) yesterday, up from £137m (€202m).

Sales of single premiums increased by 122% to £97m, up from £43m. Pension sales were 38% higher at £132m from the figure of £97m quarter one of 2004.

The insurer said that new regular premium pension sales stood still as customers and brokers put their trust on single premium products. Hibernian said its life sales increased 35% to £53m from £40m. It also benefited from the guaranteed fund launched in late 2004, which carries a five year capital guarantee.

New business contribution in the first three months of the year fell, however, from £7m to £6m.

Last night, a spokeswoman for the group said it viewed the results as “very positive.”

On the general insurance front, the group has yet to report on activities in the current year, but she said their prices are always under review. Car cover has come down 20% in the last 12 months while the cost of insurance to business can be cut by as much as 25% using its “Risk Asyst” package.

The market is still volatile and Hibernian is continuing to review all of its packages.

Recently, its cost of cover for provisional licence holders was rated the best by the Financial Regulator, she said.

Meanwhile, in Britain, Aviva reported first-quarter sales up 17% driven by good results from mainland Europe.

First-quarter sales hit £5.7 billion against £4.8 billion the same time last year. Analysts had expected an average of £5.285 billion for the period. Profit contributions from the first-quarter sales was up 18% over the first quarter in 2004 and the profit margin was 3.5%, up fractionally from 3.4%.

The company reported the sales and margins on a new industry basis designed to give investors a more realistic picture of the future profit streams coming from policies sold.

In March, Aviva, Britain’s biggest insurer, said it planned to cut 1,700 jobs following its agreed £1.1bn takeover of the RAC.

Aviva will cut 900 head office jobs and move 800 administration and processing jobs outside Britain.

The jobs will be from both Aviva and RAC, the company said.